Essence of Performance Management

ESSENCE OF PERFORMANCE MANAGEMENT

A small narrative written by Shyam Upadhyay, HR Executive at Darashaw & Company Ltd on conducting a
performance appraisal. It is in the fom of a short story and the learnings are captured in the end.

"The reincarnation of Sam De’ Costa"

Sam De’ Costa, an associate of Make Money Inc. is up for a review with his team leader, Mr. John Abraham.

Sam is not too sure about the manner in which the review will be conducted and how it will impact his growth in the organisation. John too does not have a very good picture to paint. He does not have too much of an idea in terms of conducting a review.

"Come in, Sam. Well it is time for your review. I think you have done pretty well for yourself in the year gone by…"

"No, No I am not complaining. I know you may have a few points to discuss, but you know what, lets do it sometime next week. I have a very important meeting coming up in a couple of hours, and I need to prepare for it."

"Yeah sure, and yes if there is any training program you want to attend, do let me know. I will speak to our Human Resource guy, and get you a seat booked. You can have a good paid vacation," chuckles John.

" There is no way I can get a review done from him. God, I am sic of this kind of an all this…probably I’ll need to settle for a new job."

Act II---The second coming

" Well, I just came to tell you, that you are due for a review discussion for the year."

"Well, would a weeks time be enough, for you to prepare for the review? Or would you require some more time to put your thoughts together."

"Good. I would like you to review your performance the past year, in terms of what you achieved and did not achieve against your business goals. And yes, I would appreciate it, if you could be as fair as possible both to yourself and your colleagues. I would really appreciate that."

John knows only half the job is done. He will need to prepare himself for the review meeting.

" I will need to go through our review files for the last year and see what goals Sam had decided to work on. I will also need to speak to his colleagues and take their feedback with respect to his performance," mulls John.

John gets cracking on his assignment. He speaks to Sam’s colleagues and does his own assessment.

Come Wednesday 11:00 a.m. and John and Sam are ready for their impending meeting.

"Take it easy Sam. I know it is the most important meeting of the year for you. I still remember, those nervous review days of mine. So relax, and feel at home. Let us make this a pleasurable exercise."

"Has it been good in all areas. The goals you had laid down, the previous year essentially dealt with revenue generation and business development."

"Yup, the revenue generation was good…I was suppose to make 25 lakhs last year, and I managed to make about 20 lakhs."

"That is indeed a commendable performance in a year, where the market seems to be in a constant tizzy."

"Well as far as the effort is concerned, there was no let up. But I am afraid the results are not upto the mark. I really have not performed."

"I think you are being a little hard on yourself. However, it is true that results do matter. And it is heartening to note, that you are sensitive about it. But tell me, what are the reasons you would attribute to this failure of yours."

" Firstly, the market was really not good, and secondly, my team mates were not very forthcoming in terms of their support."

"Well, as for the market not being too good. I agree. It is not really a factor under your control and is a fair reason for not achieving your target. However, if your team members have not supported you as much, then you have a problem on your hands."

"Remember, Sam your team members, come under your circle of influence. They are people you depend upon, and work with. If your team members are not supporting your cause, you need to take up the issue and try and find solutions."

" Your team members need to co-operate with you. In order to do this, you will need to win their trust and confidence. I believe that, you probably need to spend more time with your colleagues. Also, may be you are too soft on your colleagues. You can ameliorate this problem by setting good work ethics and reasonable deadlines for your colleagues to deliver, failing which you may iron out differences"

‘Please do, and let me know, how you progress over the year. I will be looking forward to it."

"Sam, we have decided this year that our main area of thrust will be business development. I will need to bring in new clients who will generate a net amount of at least Rs.200 lakhs for the company. How can you aid and assist me in this endeavor?"

"Well, looking at my performance this year, I believe that I need to work real hard on my business development skills for the coming year. I think I will pick up a lot by working with you."

"Thanks, Sam. But how much can you contribute in terms of revenue generation from new businesses and clients."

" Looking at your target of Rs. 25 lakhs for last year I think that a target that is 100% more for the forthcoming year, is a fair one. So I do agree with this target. Will you be okay, if I revised your target for revenue generation from existing clients to Rs. 50 lakhs from the Rs. 25 lakhs last year?"

"Sure. I believe that with your present list of clients, a growing control on clients coupled with a market that is likely to rebound in the next year…Rs. 50 lakhs should really not be a problem."

"I think I agree. But if the market does not rebound will revenue generation of Rs. 40 lakhs be good?"

"Then so be it. Rs. 40 lakhs in case of a pessimistic market and Rs. 50 lakhs if the market is good."

"Well, I have put down the points for the goals we have agreed on. I will give you a copy of the same so that we can do the required follow-up. Is that okay by you Sam."

"Thanks, Sam. It was a pleasure talking to you, like it always has been. Keep up your good performance and reach for the stars. We are banking on you."

"Oh! Just before you leave, for your performance in the last year, the company wants to reward you with a paid holiday for 3 days to Manali, along with your family."

"Thanks a ton, John. Hopefully, I will be eligible for a foreign trip next year with an improved performance."

Epilogue

Sam De’ Costa left the review meeting a happy man. But that was not the end. He needed to be guided, and taken care of. Performance management is a lot about coaching. The success mantra,

John followed this maxim to the hilt and the results were there for all to see. Sam and John worked and reworked on their business goals overtime. They had regular review and feedback sessions aimed at smoothening out, rough edges.

Sam is today the Chief of marketing in Make Money Inc. He swears by John, and attributes all his success to him.

"Sam was a great guy even without me. I just gave him a tool that could focus and direct his energies. His success is solely a function of his own ability and insight. Sam De’ Costa, is only a case which shows that self improvement is possible by the use of a simple and effective tool like performance management."

John today, is a performance management consultant He hopes to replicate his success in performance management at the parent company across organisations in the world.

"In business, every improvement, whether internal or external, has commercial spin-offs," quips a satisfied John Abraham, partner and CEO of Make Money Consulting Inc., a subsidiary of Make Money Inc.